News

Fracht Australia Logistics News - March 2025

3/3/2025

AROUND THE WORLD 

• SUEZ AUTHORITY EYES SWIFT RETURN TO CANAL, but it’s ‘safety first’ for carriers. Container lines will not restart Suez Canal crossings until May at the earliest, believes Yang Ming chairman Tsai Feng-ming. Dr Tsai said that while Israel and Hamas had reached a ceasefire on 19 January, shipping companies were still monitoring the situation to see if it would hold. CMA CGM Egypt and Sudan cluster CEO, Tariq Zaghloul, said consistent stability would be necessary for the French liner to consider restoring all Suez transits, and Port Said Chamber of Shipping chairman, Adel Ellameey, said insurers must be on board as well, as ships could only sail through the canal if the insurers re-classified the area as safe. The Suez Canal Authority (SCA) lost nearly US$7bn in revenue last year as vessels rerouted around the Cape of Good Hope to avoid Houthi attacks.
• TRUMP TARIFFS TO ‘BLITZ’ AUSTRALIAN SUPPLIERS. US President Trump’s announcement to introduce 25 percent tariffs on all steel and aluminium imports into the US, is a move tipped to put further pressure on Australian suppliers. According to current data, the largest sources of US steel imports are Canada, Brazil and Mexico, followed by South Korea and Vietnam. The tariffs, plus an increasing push towards reshoring, is applying pressure on Australian suppliers who already bear incredibly high costs even compared to the US.
• TONNAGES FROM CHINA TO THE US DROPPED following Lunar New Year (LNY) and dozens of e-commerce freighter flights have been cancelled. WorldACD reported that it was difficult to separate how much of that decline was simply linked to the annual holidays and factory closures in China in the weeks before and after LNY, and how much resulted from the Trump administration’s sudden decision to revoke access to Section 321 customs-free ‘de minimis’ import processes for imports from China. 

SEAFREIGHT NEWS 

• HAPAG-LLOYD HAS ACQUIRED US$3.4BN IN ‘GREEN FINANCING’ for its latest newbuilding programme from external sources, including China. Alongside US$900m from the carrier, the funding includes US$1.8bn from three leasing structures, US$1.1bn in a syndicated credit facility with the China Export & Credit Insurance Corp (Sinosure), and US$500m from two bilateral mortgage loans. The green financing will be used to support October’s order for 12 x 16,800 TEU (Twenty foot equivalent units) and 12 x 9,200 TEU LNG dual-fuel vessels – 312,000 TEU of additional capacity.
• EVERGREEN IS TO SPEND MORE THAN US$3BN on another series of 24,000 TEU ultra-large containerships. The Taiwanese mainline operator said yesterday it had commissioned 11 ships, priced between US$265m and US$295m each; six to be built by South Korean shipbuilder Hanwha Ocean and five at Guangzhou Shipyard International in China. Evergreen’s orderbook is now at 821,423 TEU, the fifth-largest, behind MSC, CMA CGM, Cosco, and Maersk, and equates to 46% of its active fleet.
• TRUMP PLAN TO TAX CHINESE-BUILT, OWNED SHIPS. The Trump Administration is proposing to “fight back” against China’s perceived maritime dominance by introducing new port fees and banning infrastructure ownership. The office of the United States Trade Representative (USTR) has completed a study, instigated under the Biden Administration and prompted by five US labour unions, into unfair foreign practices affecting US commerce, under Section 301 of the Trade Act of 1974. USTR is now seeking feedback on implementing service fees on Chinese Maritime Transport Operators.  Maritime Transport Operators with Fleets Comprised of Chinese-Built Vessels, and Maritime Transport Operators with Prospective Orders for Chinese Vessels.
• PERTH ROBOTIC COMPANY FBR is negotiating with Samsung Heavy Industries for a joint development to apply its technology in the shipbuilding industry. Samsung, the shipbuilding company based in South Korea manufactures large size commercial vessels including crude oil tankers, container vessels, bulk carriers and offshore floating units such as FPSO (Floating Production, Storage and Offloading), FLNG (Floating Liquefied Natural Gas) and drill ships. The ASX statement said Samsung had recognised FBR’s expertise and success in the development and implementation of long-boom automated robotics in outdoor environments and had approached FBR to undertake a joint development of automated solutions in the shipbuilding industry. FBR has been in discussion with Samsung since April 2024 in connection with the potential development of automation concepts for use in the shipbuilding process. 

AIRFREIGHT NEWS 

• EMIRATES SKYCARGO HAS ADDED TWO MORE BOEING 747 FREIGHTERS as it anticipates further demand growth in the air cargo market this year. The company said the two additional wet-leased 747 aircraft has boosted its freighter capacity by 15% compared with a year ago.
• LOVE IS IN THE AIR AS FLOWER VOLUMES BLOSSOM FOR AIR CARGO. Qatar Airways Cargo transported 2,800 tonnes of flowers, the equivalent of 42 million fresh-cut red roses, from Kenya and South America in time for Valentine’s day. From Nairobi, the carrier transported almost 1,600 tonnes of red roses on its scheduled flights and charters. Additionally, from Bogota and Quito, it carried close to 1,200 tonnes to key markets including Amsterdam, Middle East, Asia and Australia. In addition to its regular scheduled passenger-and-cargo flights, the cargo carrier operated nine additional Boeing 777 charters from Nairobi and 10 additional charters from Quito in the fortnight leading up to Valentine’s day.
• AIR CARGO WILL LOSE OUT WITH RETAIL RED SEA RETURN. Air cargo should expect the loss of some consumer and retail goods volumes when ocean shipping resumes in the Red Sea and Suez Canal. Milena Milenkovic, regional airfreight manager of Benelux at Flexport said that consumer goods and retail goods that are traditionally transported by ocean but moved to air at the start of the Red Sea crisis will switch back when passage becomes safe and reliable.
• FLIGHTS FROM LIEGE AND BRUSSELS CANCELLED DUE TO STRIKES. The majority of flights from Liege and Brussels airports were cancelled on 13 February as a result of nationwide strikes. Strikes were taking place across the country in response to government pension reform plans, with air traffic controller Skeyes one of the affected organisations. As a result, Belgian airspace was closed and no airspace traffic was possible over Belgium from 6:45am to 10:15pm. 

OCEANIA PORTS 

• TROPICAL CYCLONE ALFRED is creating havoc in Queensland with vessel arrivals and departures into and out of the Port of Brisbane currently suspended. The port is expected to be closed all week, with the cyclone expecting to make landfall this Wednesday or Thursday. “Severe coastal hazards are likely for southern Queensland and northern NSW coasts,” a Bureau of Meteorology alert stated. This weather situation may also have an adverse effect on local ground transport and flights.
• SWISSPORT GROWS BUSINESS IN AUSTRALIA AND WILL ENTER NEW ZEALAND. Airport ground services and air cargo provider Swissport International has announced a significant expansion of its aircargo handling capacity in Australia. Further, the Swiss company announced its entry into New Zealand, and as of late March this year, will be offering its aircargo services for the first time in the country at Auckland Airport. In Australia, Swissport has added a new location at Melbourne’s Tullamarine Airport, which spans a total area of 9,366 square meters, and is positioned as the closest facility with direct airside access.
• IN THE WAKE OF CYCLONE ZELIA, Western Australia premier Roger Cook has committed to a AU$5 million boost to the state’s supply chain and shipping capability. With widespread flooding in the Pilbara forcing the closure of sections of the Great Northern Highway, the state’s main south-to-north supply line and supermarket shelves in Broome running low, the vulnerability of the northern part of WA has again been highlighted. Mr Cook said the AU$5 million Supply Chain Resilience Fund would support initiatives that help build WA’s supply chain and shipping capability and enable WA government and industry to access shipping during emergencies.
• PILBARA Ports Authority has reported a total monthly throughput of 60.5 million tonnes for January 2025. This was a 4% increase compared with January 2024. The Port of Port Hedland handled a total of 46.5 million tonnes, of which 45.9 million tonnes was iron ore exports. This was an 8% increase in total throughput compared with the same month last year. Imports through the Port of Port Hedland totalled 138,000 tonnes, a decrease of 5% compared with January 2024. The Port of Dampier delivered a total throughput of 11.9 million tonnes, a 16% decrease from January 2024.
• PORT OF TAURANGA BOUNCES BACK. Despite what it warns is a sluggish domestic economy, New Zealand’s Port of Tauranga sees signs of early recovery in some areas as it turns in a strong performance for the six months to 31 December 2024. Group Net Profit After Tax of NZ$60.2 million was a 27.4% increase on the same period last year, while total trade volumes increased 6.9% to 12.4 million tonnes and containers increased 10.2% to 591,934 TEU compared with the prior corresponding period.  
• MELBOURNE CONTAINER TRADE SEES DECEMBER UPTICK. Port of Melbourne has reported a 10% increase in total container throughput for December 2024, compared with the same month in 2023. The port handled a total of 287,000 TEU in December, according to its latest monthly trade update.  Full imports (excluding Bass Strait) increased 9.9% against December 2023, and full exports increased 3.6%. Imports of furniture, domestic appliances and paperboard were all above the previous year’s volumes, and exports of wheat, wine and nuts also increased against 2023 volumes. 

CUSTOMER SERVICE 

If you would like further information about any of the above items, please contact one of our friendly Fracht Team members at fracht@frachtsyd.com.au